CAPM (Certified Associate in Project Management) Practice Exam

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What does a CPI greater than 1.0 indicate?

  1. Costs are on budget

  2. Costs are below budget

  3. Costs are over budget

  4. Project is ahead of schedule

The correct answer is: Costs are below budget

A CPI greater than 1.0 indicates that the project's costs are below budget. This means that the actual costs of the project are less than what was budgeted for, which is a positive sign for the project. Options A, C, and D are incorrect because they refer to costs being on, over, or ahead of budget, which would all indicate that the project is not performing as well financially.

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